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Internationally, particularly in developed countries, industrial or manufactured tariffs have been gradually reducing since the first GATT agreement entered into force in 1948. The average tariff rate on industrial goods internationally has fallen from around 40 per cent in the 1940s to 4.7 per cent today. As tariff rates have fallen, however, non-tariff trade barriers such as export subsidies, quotas, anti-dumping and safeguard measures and trade-distorting standards and conformity requirements have risen. Therefore, when evaluating levels of protection tariffs should not be viewed in isolation.

Agriculture was incorporated into the GATT in the Uruguay Round and agricultural tariffs are therefore much higher, but are trending down. The average agricultural tariff for developed countries is 6.4 per cent and 17.0 per cent for developing countries.

Table 7 shows New Zealand's top twenty⁵⁷ trading partners' average tariff rates. The rates shown are simple average⁵⁸ tariff rates that take into account tariff preferences granted to trading partners. Because of this, the averages shown are higher than averages based on MFN rates. Therefore, those countries that receive few preferences frequently pay significantly higher tariffs than the averages show, particularly for agricultural products. In addition, AVEs for specific rates of duty (including composite tariff lines) are not included in the figures below. This means that several averages in Table 7, particularly for agriculture, are significantly lower than actual levels of tariff protection.

Table 7: International Tariff Rates

Source: 2002 World Development Indicators, World Bank.

⁵⁷As ranked by export value as at the June year 2002.

⁵⁸Simple averages are generally a better indicator of tariff protection than weighted averages which are biased downward because higher tariffs discourage trade and reduce the weights applied to these tariffs.

⁵⁹These rates are effectively applied rates, which reflect the rates actually applied to trade partners in preferential trade agreements. The rates are therefore not based on MFN rates; hence the New Zealand rate as 3.3 per cent rather than 3.7 per cent as used elsewhere in this report.

⁶⁰Note that countries within the EU have identical tariff rates. This is because of the EU's CET whereby all member countries charge the same tariff to imports from non-members.

⁶¹Note that countries within the EU have identical tariff rates. This is because of the EU's CET whereby all member countries charge the same tariff to imports from non-members.

⁶²Note that countries within the EU have identical tariff rates. This is because of the EU's CET whereby all member countries charge the same tariff to imports from non-members.

⁶³Note that countries within the EU have identical tariff rates. This is because of the EU's CET whereby all member countries charge the same tariff to imports from non-members.

⁶⁴Note that countries within the EU have identical tariff rates. This is because of the EU's CET whereby all member countries charge the same tariff to imports from non-members.

⁶⁵These rates are effectively applied rates, which reflect the rates actually applied to trade partners in preferential trade agreements. The rates are therefore not based on MFN rates; hence the New Zealand rate as 3.3 per cent rather than 3.7 per cent as used elsewhere in this report.